HP: rejects hostile bid by Xerox

(CercleFinance.com) - HP Inc.
said on Thursday that its board has rejected Xerox's unsolicited bid, saying that the offer "meaningfully undervalues" the company and disproportionately benefits Xerox shareholders.

Accordingly, the computer and printer maker's board unanimously recommended HP shareholders not to tender their shares to the offer.

Last Monday Xerox launched its tender offer on all of HP's outstanding shares, at a price of 24 dollars, including 18.40 dollars in cash and 0.149 Xerox share for each HP share tendered. The offer is set to expire on 21 April.

HP said that Xerox's offer fails to reflect the full value of HP's assets and standalone strategic and financial value creation plan.

"Xerox is essentially offering HP shareholders something they already own," the group said, adding that the Xerox offer would create an "irresponsible capital structure," resulting in significant risks for HP shareholders.

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